Employment Rights Bill

Debate between Paul Waugh and Kate Dearden

Consideration of Lords message
Monday 15th December 2025 Commons Chamber

[Kate Dearden]

An economic assessment will be published, as is standard practice.

[Paul Waugh (Rochdale) (Lab/Co-op)]

I am sure that my hon. Friend shares my frustration at the sheer misinformation that has been spread about the removal of the cap on compensation. As she rightly says, the median award at the moment is less than £7,000. More importantly than that, only 2% of all employment tribunals ever result in a compensation award for unfair dismissal. Does she agree that the Government have indeed taken into account the concerns of Cross-Bench peers by committing to an assessment, and more importantly does she agree that those employers and the unions together can see what the Opposition do not, which is that this is will be fair to workers and fair to businesses that are fair to their workers?

[Kate Dearden]

I wholeheartedly agree with my hon. Friend’s comments. We believe that the current compensatory award cap also creates a systemic incentive for unfair dismissal claimants to construct more complex cases, which could take longer for a tribunal to handle. By removing the compensatory award cap for unfair dismissal claims, the incentive may be lessened, potentially making it easier for tribunals to reach a judgment more quickly and decreasing the burdens on the system.